India (and South Asia) Compressor Growth Opportunities

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India (and South Asia) Compressor Growth Opportunities

ASIA-PACIFIC | Home Appliances EquityJuneResearch16, 2026

India (and South Asia) Compressor Growth

Opportunities

The Indian government's compressor import restrictions may help

companies with domestic capacity (Midea, LG India, Daikin Industries,

etc.). In addition, we expect companies with strong compressor R&D and

production capabilities to gain share, particularly as they capitalize on

accelerating air conditioner (AC) demand in South Asia—driven by both unit

growth and the transition toward inverter ACs.

India: Compressor import restrictions to benefit players with local capacity.

On May 8, 2026, the Department for Promotion of Industry and Internal Trade (DPIIT)

introduced a Quality Control Order (QCO) amendment that effectively limits compressor

imports in FY2025/26. The policy caps allowable imports as a percentage of FY2024/25

volumes: Refrigerator compressors (<2 tonnes): capped at 40% of prior-year imports and AC

compressors (<2 tonnes): capped at 30% of prior-year imports.

Despite a temporary relaxation in May 2026, the restrictions are likely to create a supply-

demand imbalance.

FY26 AC demand: estimated ~13–14 million units•

Domestic compressor production capacity: estimated ~7-8 million units•

Result: structural supply gap, historically filled by imports•

Midea (GMCC), LG India (backward integration), and Daikin Industries are the key

beneficiaries. We estimate GMCC holds about 4-5mn/year of AC compressor capacity in

India, with most of them for residential split-type (under 2 TR). We expect about 2/3 of the

compressors are being sold to Indian players, while 1/3 used for the Midea and Toshiba

branded ACs. We expect GMCC to continue to increase its compressor capacity in India at a